A bank that fails to carry out a payment order is usually liable for:
a. interest loss and expenses.
b. loss sustained by the originator.
c. consequential damages because the payment was not made.
d. all of the above.
The relationship of guest and hotelkeeper ends when the guest:
a. pays his or her bill.
b. advises the hotelkeeper of his or her departure .
c. leaves or ceases to be a transient.
d. has stayed for 30 days and becomes a boarder.
A transfer of property by the debtor to a creditor may be set aside as a __________
transfer and the property recovered by the debtor€s trustee in bankruptcy if (1) the
transfer was made to pay a debt incurred at some earlier time; (2) the transfer was made
when the debtor was insolvent and within ninety (90) days before the filing of the
bankruptcy ; and (3) the transfer resulted in the creditor receiving more than the creditor
would have received in a liquidation of the debtors estate.
a. predetermined
b. preternatural
c. preordained
d. preferential
Chapter 7 is:
a. a liquidation proceeding.
b. a reorganization proceeding.
c. an extended time payment plan.
d. always an involuntary proceeding.
Oral or spoken defamation is:
a. slander.
b. libel.
c. privilege.
d. perjury.
Under which of the following scenarios would a third person be able to successfully sue
a corporate manager if the manger’s advice to the corporation causes loss to the third
person?
a. The manager’s advice has resulted in the corporation’s successful underselling of the
third person’s product.
b. The manager’s advice has resulted in the corporation’s breach of a contract with the
third person under which the corporation was losing a substantial sum of money.
c. The manager’s advice has resulted in the corporation’s refusal to deal with the third
person because the third person has not maintained the standards and quotas set by the
corporation.
d. none of the above.
A person or enterprise harmed by a Sherman Act violation may bring an action for:
a. punitive damages only.
b. treble damages.
c. quadruple damages.
d. actual damages only.
Initially, ratification is a question of:
a. intention.
b. consideration.
c. form.
d. implication.
Under the CISG, a buyer may reject goods
a. consistent with the right of rejection set forth in the UCC.
b. if the goods are nonconforming to the contract in any way.
c. only if the tender is a fundamental breach of the contract.
d. only if the tender is illegal in subject matter and/or purpose.
Which of the following will affect the perpetual life of a corporation?
a. a change in stock ownership
b. the death of a shareholder
c. both a. and b.
d. neither a. nor b.
The parol evidence rule:
a. applies to complete written contracts.
b. prevents proof of fraud.
c. applies to incomplete contracts.
d. is not designed to preserve the integrity of written contracts.
Disclaimers of liability are valid when the circumstances are such that it is not
reasonable to expect the accountant to stand behind certain data.
Which of the following statements regarding the commerce clause is FALSE?
a. If the federal government establishes safety device regulations for interstate carriers,
a state cannot require different devices.
b. States may not use their tax power for the purpose of discriminating against interstate
commerce.
c. The commerce clause empowers Congress to regulate interstate commerce, but not
commerce with foreign nations.
d. A state cannot refuse to allow an interstate waste collector to conduct business within
the state on the grounds that the state already has enough waste collectors.
Statutory protections for privacy in cyberspace:
a. include state laws that are difficult to enforce against web sponsors with no presence
in the state.
b. often address specific issues such as financial information rather than general
protections .
c. may not protect an individual from federal agency €routine use€.
d. all of the above.
A(n) __________ statement is a document, which may be requested by a paid-up
debtor, stating that a security interest is no longer claimed under the specified financing
statement.
a. execution
b. discharge
c. termination
d. hold harmless
What form of tort liability was developed to provide guaranteed protection for those
who are injured by conduct the law deems both serious and inexcusable?
a. strict liability
b. negligence
c. both a. and b.
d. neither a. nor b.
The issuer of a letter of credit:
a. is obligated to honor drafts drawn under the letter if the conditions specified in the
letter have been met.
b. has no duty to verify that the papers are properly supported by facts.
c. has no duty to verify that the underlying transaction has been performed.
d. all of the above.
Letter of credit transactions involve ______ contract(s).
a. one (1)
b. two (2)
c. three (3)
d. four (4)
To protect themselves against liability, franchisors often require individual franchisees
to:
a. take out fraud insurance.
b. register with the attorney general.
c. publicly disclose their own separate business identities.
d. disavow any connection with the franchisor.
Libel is the printed equivalent of the spoken form of defamation known as slander.
Employees may waive their attorney-client privileges when using their work computers
for communication.
The relationship between the franchisor and the franchisee is ordinarily an
arm€s-length employment relationship.
When a contract falls within the statute of frauds, the signatures of both parties must be
shown to the court.
A contract provision requiring that suit be brought within one (1) year does not violate
public policy, although the statute of limitations would allow two (2) years in the
absence of such a contract limitation.
The distinction between offer and acceptance is no longer relevant in cyberlaw.
A warranty may be express or implied.
Consideration always must be an act or the promise to perform an act.